OECD BEPS Action 1: Taxation of Digital Economy – New VAT practices in Turkey

Article 9 of the Turkish Value Added Tax (VAT) Law on the “Party Liable for Tax” was amended on 28 November 2017. The amended article applies as of 1 January 2018. The amendment stipulates that VAT arising from services provided electronically by those without a residence, workplace, headquarters, or business centre in Turkey to individuals in Turkey who are not VAT taxpayers, must be declared and paid by the non-resident e-service providers. On 27 December 2017, the Turkish Tax Authorities issued a draft communiqué that regulates the implementation of the new legislation.

Our Turkish Alliance partner, Centrum Auditing, recently published a Tax Bulletin. In this Bulletin, they explain the new VAT legislation in Turkey. They also provide their observations on implementation rules for electronic services.

The Bulletin covers the following issues:

  • Objective and scope of the new legislation
  • Registration and administrative procedures
  • Filling and payment period
  • Penalties for late filing
  • Our observations and recommendations

To read the complete Tax Bulleting, please click here.